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1) how do you know that the data is being stored using codepage 1256 - have you, for example, used HEX(colname) to verify?
2) is it being stored in a CHAR FOR BIT DATA column? (yes, I know this is unlikely)
3) run an application snapshot. confirm that the server thinks the application has a codepage of 1256 (codepage_id). Use GET DB CFG to confirm that the server has codepage 1208.
4) what error do you get from unixODBC? (don't know this product)